Payment & Benefits

Labor Relations

Balancing worker rights and management prerogatives.

Wage

Hourly pay rates regulated by labor standards.

Salary

Annual or monthly pay for managers and professionals.

Minimum Wage

Lowest wage an employer can pay an employee.

Distress establishment

New business enterprises

Retail and service-not more than 10 employees

Establishment affected by natural calamity

Exemptions from Minimum Wage

Wage Order R9-22

Increase of 30 Php minimum wage

Wage Order R9-DW-04

Increase of 600 Php in the monthly minimum wage of domestic workers

• PD 442, Art. 93. Compensation for Rest Day, Sunday or Holiday (Premium Pay)

• PD 442, Art. 94. Right to Holiday Pay

• PD No. 851 13th Month pay and Bonus

• Night Shift Differential Pay

Compensation for work on special days

Working on a scheduled rest day

Working on a Sunday that was supposed to be the rest day

Working on a Sunday or holiday when the work doesn't have fixed workdays and rest days

In PD 442, Art. 93, the employee must get an extra 30% of their regular wage on what conditions?

Working on a special holiday that was also the rest day

In PD 442, Art. 93, the employee must get an extra 50% of their regular wage on what condition?

Double or 200% of their regular rate

In PD 442, Art. 94, workers are paid how much when they work on a regular holiday?

Additional 30% of the regular wage

In PD 442, Art. 94, workers are paid how much when they work overtime on a regular holiday or rest day?

13th Month Pay/PD No. 851

1/12 of annual salary, paid not later than December 24.

Night Shift Differential Pay

Extra pay for night shift work

20% additional pay for work done between 6:00 PM and 6:00 AM.

Government night shift pay

10% additional pay for work done between 10:00 PM and 6:00 AM.

Private sector night shift pay

PD 442, Art 95. Service Incentive Leave.

RA 9262 Anti Violence Against Women and their Children Act of 2004 Sec. 43. Entitled to leave

RA No. 9710, Sec. 18. Special Leave Benefits for Women

RA 8972: Solo Parents Welfare Act Of 1996. Section 8. Parental Leave

RA No. 8187 Paternity Leave Act of 1996. Sec. 12.

RA No. 11210 Expanded Maternity Leave

LEAVES AND EMPLOYEE BENEFITS

PD 442, Art 95. Service Incentive Leave.

Employees with at least one year of service are entitled to five days of paid leave per year.

RA 9262 Anti Violence Against Women and their Children Act of 2004 Sec. 43. Entitled to leave

Victims of domestic violence can avail up to 10 days of paid leave in addition to other leave benefits.

RA No. 9710 Sec. 18. Special Leave Benefits for Women

Women who have worked at least 6 months in the past 12 months are entitled to 2 months of fully paid leave for surgery due to gynecological disorders.

RA 8972: Solo Parents Welfare Act Of 1996. Section 8. Parental Leave.

7 days parental leave per year for solo parents.

RA No. 8187 Paternity Leave Act of 1996. Sec. 12.

7 days paid leave for fathers after first four deliveries of their legitimate spouse.

RA No. 11210 Expanded Maternity Leave

105 days of paid leave for childbirth (7 days transferable to the father).

15 extra days of paid leave for solo parents (RA 8972).

30 days extra leave without pay (optional).

60 days paid leave in case of miscarriage or abortion.

Retirement Pay Art. 287.

Retired workers are entitled to ½ month's salary per year of service (6 months or more counts as a full year).

Separation Pay (Authorized Causes)

Severance money paid to workers laid off through no fault of their own (1 month's pay per year of service for redundancy/automation; 0.5 month's pay per year of service for retrenchment/closures).

Separation Pay in Lieu of Reinstatement

Court-ordered severance paid to an illegally dismissed employee when "strained relations" prevent them from returning to their old job.

Backwages

Total accrued salary, benefits, and allowances paid to an employee from the exact date they were illegally dismissed up to their actual reinstatement.

Service Charge Payout

The 100% equal distribution of collected service charges collected by hotels, restaurants, and similar establishments to all rank-and-file and supervisory employees.

R.A. 6727 (Wage Rationalization Act)

Law setting rules for wages

RTWPBs (Regional Tripartite Wages and Productivity Boards)

Regional bodies that determine daily minimum wages using established criteria (industry, locality, size, capitalization).

Wage ceiling

A specified maximum daily wage up to which workers are covered for wage increases under a Wage Order. Anyone already making the maximum wage or more is legally pushed outside the scope of the mandatory minimum wage increase.

Estimated Equivalent Monthly Rate (EEMR)

Converts a daily wage into a monthly salary so employers can pay monthly-paid employees consistently.

Hazard Pay

Amount paid to workers (including MWEs) who are exposed to great danger in their work.